China Cuts Saudi Crude Orders as Hormuz Risks and Discounts Reshape Trade

AI Summary

China has reduced its crude oil orders from Saudi Arabia amid weak demand, competition, and disruptions at the Strait of Hormuz. Some Chinese refiners have not requested term cargoes for August, reflecting significant shifts in oil trade patterns.

Some Chinese refiners have not nominated term crude cargoes from Saudi Arabia for August, while others have not been allocated any term supply for next month, as weak demand in China, competition from other producers, and continued disruptions at the Strait of Hormuz have slashed Saudi supply in recent months. At least two refiners in China have not asked for any term cargo deliveries for August, and a few others have not received provisional allocation volumes, traders with direct knowledge of the supply arrangements told Bloomberg on Tuesday.…